The "value" of GGX is it's assets which are worth about $3.5million in my view (looking at what they paid for them; I don't see why OIP shareholders should be stumping up for failed exploration to date).
Why are OIP shareholders being asked to value GGX assets at almost double that? Using VWAP for the previous 3 months doesnt cut it for me.
Arising out of this is 3 main issues: 1. The price isn't right 2. The price places no value on OIP's assets other than cash alone, ergo GGX shareholders are getting the best deal as they get OIP's assets (other than cash) for FREE. Now let me think....who are GGX's biggest shareholders? 3. Out of the universe of assets available for acquisition (or attempted acquisition) are GGX's most valuable? I think you'd be hard pressed to support that argument.
Therefore...can someone please explain to me how the transaction at the proposed price is fair and reasonable to OIP shareholders? I must have missed something.
I hope Dennis and co can make it work but the price of the proposed transaction is unreasonable as it currently stands. Get the price right and I'm more likely to be on board.
Disclosure: Dennis is not a customer of mine; never met him actually.
OIP Price at posting:
10.0¢ Sentiment: None Disclosure: Held
